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"will they take it?" - the most common question asked regarding trade ins.

Most of the time, when you think of  trade in values, you think to yourself, I'd rather get robbed at gunpoint.

Seriously. Whatever formula the dealerships use to calculate a trade in value, or whatever bull they feed to people about the database values, auction prices, etc, its ridiculous.

When does it make sense? Well put it this way, never. When does it not drive you insane? Probably when you got a lot more than you thought you'd get on Craigslist.

Often, a lot of people will leave their junk car at home thinking the dealership will have no use for it except for maybe giving it to a "Cash for Junk" company. That's not true.

Visiting a retail manufacturer's store such as a Jeep or Honda dealership with your junk car could land you a better deal than what your gut is telling you.

Big brands such as VW, Mercedes-Benz, GM, Chrysler, Toyota, and others, tend to have allowances and rebates that apply to your trade in.

More than that, a car that is perceived to be junk to the private buyer, could really be a highly sought after vehicle at the auction.

Why? This could be for various reasons:

  1. Parts and components
  2. Foreign Export Demand
  3. Collectability and Restoration
  4. Dealership Allowances

Take for example my fathers car.

At no time during the process of acquiring his business' vehicle (Smart ForTwo) did he think to himself to trade in his 15 year old BMW.

In 2015, his BMW X5 was starting to give him a lot of problems that hindered his own use of the car, as well as selling private party, or even through Craigslist. There was really no logical choice but to take whatever he could get, and at the time, he was thinking that meant close to nothing.

Wrong!

He was in for quite a surprise at the dealership. You see, the impact that your car's "junk trade in value" can have when used against the lease of a new car is HUGE!

Because trade ins are considered a taxable item, the taxable amount of the vehicle being traded in is also deducted from the taxable amount of your new vehicle. More than that, a trade in value, for example, of $5,000 can result in a $140 deduction on your new 36 month lease payment.

Still think your car is trash?

Think again!

What is seemingly worthless to you, rotting away in your backyard or falling apart on your daily commute, could be the magic wand in getting a pretty attractive deal on a new car.

Give it a try. Whats the worst that could happen?

We'll help you push it back home ;)

(Disclaimer: car pushing service available on appointment basis only.)

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